Some companies look so promising to investors they don’t even bother if their moves are genuine or plain hoaxes. That’s what happened yesterday with Tesla Motors stock, which jumped in last minute trading after the company pranked everybody on April Fool’s Day.
The shares of the California based electric automaker jumped and trading volume spiked during the last minutes of trading at the New York Stock Exchange when the electric carmaker released a press brief that claimed to introduce a new company product. While just around five minutes of trading time remained, Tesla released a statement on its official website with the headline proclaiming they were “Announcing the Tesla Model W.” The stock surged around $1.50 or about 0.75 percent to a high of $188.50. Also, in that interval almost 400,000 shares were traded – the best one-minute for trading volume since February 12. The shares did fall back and even ended trading at $187.59, 0.63 percent below Tuesday’s closing price.
The Tesla statement appeared to follow in the footsteps of the recently launched Apple Inc. smartwatch: “Tesla today announced a whole new product line called the Model W. As many in the media predicted, it’s a watch. That’s what the “W” stands for.” Some media outlets immediately jumped the gun and didn’t corroborate the story, releasing headlines that were later pulled off. Tesla later announced it was just an April Fool’s Day prank – one of the two produced that day. The other involved a video showcasing a new self-driving vehicle that assists drivers of Model S sedans to evade both traffic and parking penalties.